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TMI Blog2016 (11) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... ent proceedings u/s 147 of the Act and issue notice u/s 148 of the Act in a mechanical and casual manner and by considering the irrelevant and incorrect facts and thus assumption of jurisdiction for initiation of re-assessment proceedings and issuance of notice u/s 147 and 148 of the Act cannot be held as valid and thus we are inclined to quash the same. - Decided in favour of assessee - I.T.A .No. 6319 /Del/2012 - - - Dated:- 5-9-2016 - SHRI G. D. AGRAWAL, VICE PRESIDENT AND SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER For The Appellant : Sh. Satyam Sethi, Adv For The Respondent : Sh. Umesh Chandra Dubey, Sr. DR ORDER PER CHANDRA MOHAN GARG, JM This appeal is filed by the assessee against the order of the CIT(A) XIX, New Delhi dated 14/10/2012 passed in First Appeal No. 98/2010-11 for Assessment Year 2003-04. 2. Application for admission of additional grounds of the assessee: 3. We have heard arguments of both the sides on the application of the assessee dated 16/9/2114 filed under Rule 11 of the Income Tax Appellate Tribunal Rules 1963 for admission of additional grounds. 4. The Ld. Counsel submitted that the ground raised along with the ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lenged the initiation of re-assessment proceedings in the first round of appeal before the First Appellate Authority ie. CIT(A). In view of decision of Hon'ble Supreme Court in the case of NTPC Ltd.(Supra). The assessee can raise additional ground to challenge legality of the initiation of re-assessment proceedings and notice u/s 147 148 of the Act. Thus, respectfully following the same we are of the considered view that the additional grounds raised by the assessee deserve to be admitted and hence we admit the same accordingly application of the assessee for admission of additional ground is allowed. 8. We have heard argument of both the sides on the additional grounds as mentioned hereinabove and carefully perused the relevant material placed on record inter-alia assessment order impugned of the CIT(A) and papers submitted along with appeal including paper book filed by the assessee spread over 52 pages and brief written synopsis of the assessee. 9. Firstly, the Ld. AR drew our attention towards paper book page 30 and submitted that in the reasons recorded there are number of mistakes regarding facts and figures which clearly shows that the Assessing Officer had initi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of re-assessment proceedings u/s 147 148 of the Act. 12. The Ld. Counsel again took us through the decision of Hon'ble High Court in the case of Signature Hotels (Supra) and submitted that reason to believe did not refer to any statement of alleged entry operators implicating the assessee neither there is mention of date or receipt of report from the Investigation Wing nor there is date of recording of reasons has been stated in the reasons as per copy supplied to the assessee. Therefore, Assessing Officer initiated re-assessment proceedings in a casual and mechanical manner without application of mind and on this premise the assumption of jurisdiction u/s 147 148 of the Act cannot be held as valid, being bad in law and void ab initio. 13. Replying to the above the Ld. Dr strongly supported the action of the A.O. However, she fairly admitted that there are factual arising in the reasons recorded and present case is pertaining to Assessment Year 2003-04 whereas the Assessing Officer in Para 3 of the reasons recorded the alleged that the entries amounting to ₹ 85.50 lakhs have been taken during the Financial Year 2003-04 from group of operators which is relevant t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... close fully and truly all material facts necessary for its assessment, for the assessment year 2003-04 and has not paid paid tax on such amount. The unaccounted moneys which should have been charged to tax are being ploughed back to business without paying due tax on it. In view of the above facts, I have reasons to believe that income to the tune of ₹ 85.50Lacs, of the assessee company for AY 2003-04, has escaped assessment. Since the assessment for the year has been completed u/s. 143(3) of Act therefore in accordance with the provisions of section 151 of I T Act, sanction for issue of Notice u/s 14S of the Act is being sought from the CIT, Delhi-VI, New Delhi. 15. From careful reading of above, it is admitted fact that in Para 3 of the reasons recorded the A.O alleged that the entries has to ₹ 85.5. lakhs have been taken during Assessment Year 2003-04 and he is intending to initiate re-assessment proceedings for Assessment Year 2003-04 which is clear non application of mind. In Para 4 also the A.O alleged that the assessee has back unaccounted money of 85.50 lakhs in its business through he accommodation entry and thus there was a failure on the part of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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